In 2020, after burning through $40k, I finally became profitable from trading.
What led the breakthrough?
Understanding Market Structure🧵👇
What led the breakthrough?
Understanding Market Structure🧵👇
Market structure (MS) is vital 💜
• It'll help you avoid costly mistakes
• It'll help plan your trades
• It'll guide your S/L and T/P levels
If you're a seasoned trader, you can skip forward to this other thread to test yourself 👨🎓
• It'll help you avoid costly mistakes
• It'll help plan your trades
• It'll guide your S/L and T/P levels
If you're a seasoned trader, you can skip forward to this other thread to test yourself 👨🎓
MS helps avoid mistakes🪓
• It is vital to recognize if the market is trending or ranging
• Sure way to lose money to trade a trend following strategy in a ranging market
Don't get chopped up trading the trend in a ranging market
• It is vital to recognize if the market is trending or ranging
• Sure way to lose money to trade a trend following strategy in a ranging market
Don't get chopped up trading the trend in a ranging market
MS helps plan your trade 🧠
Your trading plan has to change based on market profile
• Trending = buy at pull backs
• Ranging = buy at extreme of ranges, don’t get chopped up in the middle
Recognizing breaks in MS = recognizing key levels to trade at
Your trading plan has to change based on market profile
• Trending = buy at pull backs
• Ranging = buy at extreme of ranges, don’t get chopped up in the middle
Recognizing breaks in MS = recognizing key levels to trade at
Price by itself is neutral. It is neither good or bad.
It only starts painting a story when we attach terms and lines to it.
Now how do we paint out the Signs of Market Structure? 📈📉
It only starts painting a story when we attach terms and lines to it.
Now how do we paint out the Signs of Market Structure? 📈📉
Trending Market Signs
• Bullish trend: Higher highs and higher lows
• Bearish trend: Lower highs and lower lows
• Each wave creates a pivot point, connecting them forms a trendline
• Pull backs are short lived, statistically pull backs are ~40% of the pump
• Bullish trend: Higher highs and higher lows
• Bearish trend: Lower highs and lower lows
• Each wave creates a pivot point, connecting them forms a trendline
• Pull backs are short lived, statistically pull backs are ~40% of the pump
Ranging Market Signs
• Connecting the swing highs and lows would form a horizontal line
• Prices consolidates within a swing high and a swing low
Wicks/Deviation outside of the range are evidence of..
failure to trend and that price wants to be pushed back into range🙃
• Connecting the swing highs and lows would form a horizontal line
• Prices consolidates within a swing high and a swing low
Wicks/Deviation outside of the range are evidence of..
failure to trend and that price wants to be pushed back into range🙃
If you feel confused about the PA, its very likely a ranging market
Don't trade against trend and don't fool yourself into thinking its trending when its actually ranging 🐵🙈🙊
Don't trade against trend and don't fool yourself into thinking its trending when its actually ranging 🐵🙈🙊
Alpha Tips 👑
Do not front-run yourself!
• A valid higher high is only confirmed AFTER a higher low or equal low forms
• A valid lower high is only confirmed AFTER a lower low or equal low forms
• Wicks or deviation outside of the S/R is evidence of a ranging structure
Do not front-run yourself!
• A valid higher high is only confirmed AFTER a higher low or equal low forms
• A valid lower high is only confirmed AFTER a lower low or equal low forms
• Wicks or deviation outside of the S/R is evidence of a ranging structure
Alright that's all folks. I hope what I've shared is useful.
If you've enjoyed this thread,
• Follow me at @Tims9101
for more trading related content
• Retweet to share the good stuff. Sharing is caring.
Cheers 😇
If you've enjoyed this thread,
• Follow me at @Tims9101
for more trading related content
• Retweet to share the good stuff. Sharing is caring.
Cheers 😇
Think you're better with market structure now?
Check out this thread to test your skills on MS
Check out this thread to test your skills on MS
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